FINNEWS LATAM-Europe woes could hurt Fibria, Magnesita, Codelco-Moody's

Thu Aug 2, 2012 1:26pm EDT

A protracted recession across the euro zone could have a negative impact on Latin American exporters, particularly raw materials producers such as pulp producer Fibria, refractory maker Magnesita and Chilean copper powerhouse Codelco, ratings company Moody's Investors Service said in a report on Thursday.

The recession in Europe could exacerbate a slowdown in China, a key buyer of Latin commodities, making the companies more vulnerable to a deterioration of external conditions, analysts Marianna Waltz and Brian Oak said. Steel as well as paper and pulp companies would be particularly exposed to the situation, while producers of finished goods would be more resilient, the Moody's analysts said.

The report did not specify the impact on ratings of the above-mentioned companies.

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